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FOR IMMEDIATE RELEASE
OLDWICK - AUGUST 22, 2017 12:56 PM (EDT)
A.M. Best has released its 2017 Country Risk Assessment Reports, providing economic, political and financial system risk assessments on 120 countries, including a new report on Croatia and the downward reassessment of three countries, two of which are in the Caribbean.
A.M. Best defines country risk as the risk that country-specific factors could adversely affect an insurer’s ability to meet its financial obligations. Country risk is evaluated and factored into all A.M. Best ratings. As part of evaluating country risk, A.M. Best identifies the various factors within a country that may directly or indirectly affect an insurance company. Countries are placed into one of five tiers, ranging from “CRT-1” (Country Risk Tier 1) — denoting a stable environment with the least amount of risk — to “CRT-5” (Country Risk Tier 5) — for countries that pose the most risk, and therefore, the greatest challenge to an insurer’s financial stability, strength and performance.
A Country Risk Tier of CRT-4 has been assigned to Croatia, reflecting the slow recovery of its economy. In addition, the country risk assessments of Barbados, South Africa and Trinidad and Tobago were moved to a CRT-4 from a CRT-3 due to increased economic and financial system risk.
This update is part of A.M. Best’s annual review of its country risk assignments and is not expected to affect any Credit Ratings.
A.M. Best’s country risk evaluation does not impose a ceiling or cap on ratings. Country risk is integrated into the rating of an insurance company alongside other rating factors such as balance sheet strength, operating performance and business profile. Please visit A.M. Best’s Country Risk center for the complete listing of Country Risk Tiers and country-specific reports.
For more information about A.M. Best’s country risk methodology, “Evaluating Country Risk,” please visit the methodology section of A.M. Best’s website.
A.M. Best is the world’s oldest and most authoritative insurance rating and information source.